DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers

Question 1

In design-build, when is the most effective time to apply value engineering to achieve significant cost savings?

Accepted Answer

During early schematic design

Answer

Value engineering applied during early schematic design offers the greatest opportunity for cost savings before design decisions become locked in.

Question 2

What is a Guaranteed Maximum Price (GMP) in the context of design-build delivery?

Accepted Answer

A contract ceiling beyond which the owner does not pay cost overruns

Answer

A GMP establishes an upper cost limit, protecting the owner from overruns while allowing savings to be shared if the project comes in under budget.

Question 3

Which cost-estimating method is most appropriate during the conceptual phase of a design-build project?

Accepted Answer

Parametric estimating based on cost per square foot

Answer

Parametric estimating using cost-per-unit metrics is best suited when design details are not yet developed.

Question 4

In design-build contracts, what does 'open-book accounting' refer to?

Accepted Answer

Full transparency of project costs shared with the owner

Answer

Open-book accounting allows the owner to review actual costs, fostering trust and collaboration in cost-reimbursable design-build contracts.

Question 5

What is the primary goal of value engineering (VE) in a design-build project?

Accepted Answer

Achieve required functions at the lowest overall life-cycle cost

Answer

VE systematically analyzes functions to identify alternatives that deliver the required performance at reduced total cost over the project's life cycle.

DBIA - Design-Build Institute of America Certification Practice Test

DBIA - Design-Build Institute of America Certification Practice Test

DBIA DBIA - Design-Build Institute of America Cost Management and Value Engineering Questions and Answers